Higher levels of state funding for Home‐ and Community‐Based Services linked to better state performances in Long‐Term Services and Supports

Abstract

ObjectiveTo examine the relationship between the level of state funding for Home‐ and Community‐Based Services (HCBS) and state overall and dimension‐specific performances in Long‐Term Services and Supports (LTSS).Data Sources and Study SettingWe employed state‐level secondary data from the Medicaid LTSS Annual Expenditures Reports, the American Association of Retired Persons (AARP) State Scorecards, the U.S. Census, and Federal Reserve Economic data, spanning the timeframe of 2010–2020.Study DesignOverall state LTSS rankings, along with dimension‐specific rankings, were modeled separately against state Medicaid spending on HCBS relative to total Medicaid spending on LTSS. All models were adjusted for state covariates, secular trend, and state fixed effects.Data Collection/Extraction MethodsThe study sample included all 50 states and the District of Columbia. However, California, Delaware, Illinois, and Virginia were excluded from FY2019 due to missing data on Medicaid HCBS expenditures.Principal FindingsEvery 10 percentage‐point increase in the proportion of Medicaid LTSS spending to HCBS demonstrated 2.05 points improvement (95% confidence interval [CI]: −3.88 to 0.22, p = 0.03) in rankings for state overall LTSS system performance, 2.92 points improvement (95% CI: −4.87 to 0.98, p < 0.01) in rankings for the Choice of Setting and Provider dimension, as well as 1.73 points (95% CI: −3.14 to 0.32, p = 0.02) ranking improvement in the dimension of Effective Transitions.ConclusionsOur study suggested promising effects of increased state funding for HCBS on LTSS performance.